Michael Kramer and the clients of Mott Capital own Tesla and Acadia

February 28, 2019

U.S. Trading Session

• S&P 500 Futures  -5pts
• 10-Year Yields 2.67%
• Oil $56.81
• VIX 15.04
• Dollar Index: 95.84

International Trading Session:

• Japan Nikkei -0.79%
• China Shanghai -0.44%
• Hong Kong Hang Seng -0.43%
• Singapore STI: -1.15%
• South Korea KOSPI: -1.76%
• Australia ASX: +0.30%
• FTSE -0.51%
• Dax -0.05%

Key Events

US GDP Estimates 2.2%  Actual +2.6%

International Trading:

South Korea

South Korea Kospi fell hard last night –possibly in response to North Korea/US talks, falling below support levels at 2,225. While this is a setback and negative development, the index managed to stay above the long-term downtrend that we have followed since January 2018. We need to continue to watch the development as further declines would severely damage our positive global outlook from a key export economy.

Hong Kong HSI

For now Hong Kong HSI has paused at resistance around 28,980. This is less worrisome than Korea and seems like a healthy consolidation but still something that is worth monitoring.

US Trading

The S&P 500 is pointing to another flat trading session. However, the overall trend remains higher. An increase above 2,798 sends the index on to 2,812. While downside risk remains to 2,750.

JD

JD.com is popping this morning rising nearly 14% after the company beat on both the top and bottom lines. The stock is trading to $29.34 today, bumping up against resistance. Almost exactly how I drew it up the other day. Why JD.Com’s Stock May Pop Following Results

Square (SQ)

One that isn’t going my way this morning is Square, but as I said last night. I think this one may be overdone, as the company’s quarterly results didn’t look so bad to me.  I feel as if Square often guides to weaker earnings plus the full-year outlook appears to be pretty strong.

The stock has held around $74-75 in the after-hours session. I think these levels hold for Square, and the stock does rebound. You can read my pre-earnings look Square’s Stock May Jump Following Its Results

Tesla (TSLA)

Tesla is pointing to a higher opening today, as investors eagerly await the 5 PM news announcement. The stock is nearing a breaking out at the downtrend, and that could send the shares higher towards $330.

Celgene (CELG)

Celgene is falling today after 8% Bristol Myers shareholder Wellington Management does not support the purposed acquisition of Celgene. Clearly, should the deal not get approval it would be a big blow to Celgene, with a chance for the stock to fall back to $67.

BOX

BOX is getting crushed after reporting weaker than expected results. A drop below $18.50 sends the stock to $17.50. For now, $19.50 will serve as resistance.

Acadia (ACAD)

Keep an eye on Acadia today after yesterday’s breakout rising above $24. That level will not act as a firm support level going forward especially given how difficult it was to increase above. $27 is now the next significant level to watch for resistance.

Have a great day!

-Mike

Photo From Flickr

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.  february 28